Driver Turnover: Best Practices

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Best Practices to Reduce Truck Driver Turnover

In This Paper: Small to Mid-Size Market Urged to Go the Extra Mile to Reduce Truck Driver Turnover in 2016

Whenever the trucking specialists at PEOPLEASE are discussing business pain points with a client, the majority of thetime our clients claim driver turnover as one of their most troubling. Fact is, truck driver turnover has a multitude oforigins, and sometimes a carefully crafted and personalized approach to addressing turnover needs be utilized so atrucking company can overcome the challenge of negative driver attrition. The following are a few important stepsthat would help bolster any truck driver turnover reduction initiative.

1. Understand That Trucking Is SpecialWhile evaluating their turnover metrics, some trucking companies tend to compare against metrics that aren’ttrucking industry specific. Focusing on transportation industry specific metrics is critical. For example, consider thishelpful factoid reported by the American Trucking Association: “…the 11th consecutive quarter the turnover rate hasbeen above 90 percent at large trucking companies.” In other words, understanding how trucking industry leadersare performing can set an accurate benchmark while beginning to evaluate turnover for your small to mid-sizetrucking company.

2. Establish What Metrics Are Important to Your BusinessWe recommend that our clients carefully select and evaluate relevant turnover metrics. Quarterly, annually, etc. aretypical timeframes for evaluation, however, specialty haulers might have different ebbs and flows of hiring. Also,many of PEOPLEASE’s clients have seasonal contracts, so turnover rates might spike based upon their haulingspecialty or regional concerns. For PEOPLEASE clients, customized turnover metrics can be populated rather easily.Moreover, the PEOPLEASE trucking experts can populate, identify, and broadcast regional and national trends basedupon the collective turnover metrics generated from our vast national client base.Below is just a small sampling of 2016 turnover metrics from our clients’ collective work site employees: PEOPLEASE clients enjoyed 57% employeeturnover; 40% less than the national average fortruck drivers Nationwide, 28% of PEOPLEASE clients’ employeesaccepted other employment Nationwide, 13% of PEOPLEASE clients’ employeesleft without stating a reason why Nationwide, only 7% of PEOPLEASE clients’employees left due to lack of workEmployee TurnoverPEOPLEASEClientsDriverNationalAverage57%97%Additionally, the following is a summarized graphical representation from the PEOPLEASE client pool indicatingprimary employee turnover factors.

3. Money Isn’t Always EverythingEveryone in trucking has lost a good truck driver who took an offer from a competitor that pays more (oroffers a generous signing bonus, health benefits, etc). However, consider what William B. Cassidy, SeniorEditor of joc.com shared: “Despite paying higher wages, many large U.S. truckload carriers are still strugglingto keep drivers in their trucks. The annualized driver turnover rate at large truckload carriers rose one point to97 percent in the third quarter last year, the American Trucking Associations said.” In short, money isn’tALWAYS everything.If an alarming number of drivers are leaving due to compensation, creative retention techniques might be agood weapon to combat driver turnover. Try focusing on the non-mandatory benefits that make yourcompany really special such as: Family-like working atmosphere Guaranteed home time Generous benefit package Company longevity Quality equipment“Other” factors include unsatisfactory performance, company policy, and health reasons to name a few.SummaryDriver turnover is costly (some say $5,000 per hire), and unavoidable to a certain degree. It is imperative thattrucking companies focus on trucking specific metrics, understand which metrics (and there are A LOT outthere) are most impactful to their unique business model, and remember that truck drivers are not all aboutthe money. If that can be accomplished, small to midsize companies will be well on their way to going theextra mile in reducing their driver turnover in 2016.References-Cassidy, William B. (February 2, 2015). US truck driver turnover rate rises, pressuring shipping costs. www.joc.com.Retrieved February 2, 2016, from http://www.joc.com/trucking-logistics/labor/us-truck-driver-turnover-rate-risespressuring-shipping-costs_20150202.html-Sullivan, John. (October 6, 2003). The Right Way To Measure Turnover. www.eremedia.com. Retrieved February 2,2016 from http://www.eremedia.com/ere/the-right-way-to-measure-turnover/